HIGHLIGHTS
Firebird Managing Director Mr Peter Allen commented: “This agreement allows Firebird to continue its strategic focus on the Oakover Project and our Chinese LMFP strategy. By partnering with Macro, we leverage their expertise and resources to drive the development of these tenements, which not only ensures that they receive the necessary investment and development attention but also allows Firebird to benefit from potential production and value growth without immediate capital outlay.
“We are confident that this collaboration will unlock value for our shareholders and look forward to a prosperous collaboration with Macro.”
Key Agreement Terms
Firebird has signed a binding Heads of Agreement with Macro Metals Ltd (“Macro”), an unrelated party, whereby Macro has the exclusive right to earn 80% in four tenements (E46/1456, E46/1457, E46/1389 and E45/5906) (Tenements) by committing to spend $150,000 in exploration and development expenditure on the Tenements within 12 months (Agreement).
This expenditure must include at least 10 RC holes, for a minimum total of 100 metres drilled on each of the four tenements. Macro will assume full responsibility for the Tenements over this earn-in period.
Firebird’s 20% interest will be free carried until such time Macro makes a decision to mine, at which point Macro and Firebird will enter into an incorporated joint venture (“SPV”). The SPV will enter into a life of mine, mining services contract with Macro’s wholly owned, mining services subsidiary, Macro Mining Services Pty Ltd, for the provision of all services across the entire pit to customer supply chain on a commercial, arms’ length schedule of rates. Firebird retains the ability to transfer its 20% interest into a 1% royalty. The Agreement also allows for Firebird to earn 1% sales commission (based on Free on Board (FOB) revenue).
Completion of the transaction is conditional upon due diligence to the absolute satisfaction of Macro and any necessary regulatory or third-party consents or approvals required before close of business on 30 September 2024 (or such time as otherwise agreed).
The Agreement otherwise contains terms and conditions considered standard for agreements of this nature.
The Company notes that Mr Evan Cranston is a Director of both Firebird and Macro, however, this Transaction has been approved by the independent Directors of Firebird.
Firebird’s original agreement for the acquisition of the Wandanya tenements was established with Mining Equities Pty Ltd in 2022. Under this agreement, a total shipment milestone consideration of up to $500,000 was to be paid to Mining Equities Pty Ltd in instalments based on export shipments or mine gate sales. Upon reaching the maximum milestone consideration, a 1% royalty would be payable on an FOB basis for export shipments or a mine gate basis for domestic sales. Mining Equities Pty Ltd has agreed to amend the original terms by removing the $500,000 payable with the 1% royalty now payable on all export shipments and domestic sales.
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